United States Printing & Lithographing Co. v. Crites

15 Ohio App. 63, 1 Ohio Law. Abs. 395, 1921 Ohio App. LEXIS 209
CourtOhio Court of Appeals
DecidedJune 16, 1921
StatusPublished

This text of 15 Ohio App. 63 (United States Printing & Lithographing Co. v. Crites) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Printing & Lithographing Co. v. Crites, 15 Ohio App. 63, 1 Ohio Law. Abs. 395, 1921 Ohio App. LEXIS 209 (Ohio Ct. App. 1921).

Opinion

Matice, J.

The plaintiff brought its action in the common pleas against H, M. Crites and Herman Shade, the defendants, who were partners doing a canning business under the partnership name of C. E. Sears & Company, to recover $3,361.77 for a quantity of labels manufactured and furnished such partnership, for the season of 1916, under a written contract. The defendants, by cross-petition, allege that by the terms of the contract the plaintiff agreed to furnish labels for defendants’ requirements for three years following the date of the contract, December 24, 1914, and that plaintiff refused to furnish such requirement for the year 1917, so that defendants [64]*64were compelled to secure the required labels elsewhere at a price exceeding the contract price with plaintiff in the sum of $4,937.75. The defendants ask counterclaim in that amount, and for judgment for the difference between the amount owed by them to plaintiff on the labels furnished for 191'6. The plaintiff by way of reply alleges that at the time of making the contract in controversy the defendants as a partnership under the name of C. E. Sears & Company were operating canning factories at Circleville, Washington C. H., Canal Winchester, London and Stoutsville, and at no other place, and that the labels contracted for were for the sole requirement of said business of the said partnership, and then follows a threefold defense to the claims asserted in the cross-petition:

(1) That by February 10th of each year C. E. Sears & Company was to furnish plaintiff with specifications for the printing of the labels for such year; that no specifications were furnished for the year 1917, nor was any demand made by the said C. E. Sears & Company for the furnishing of the labels for that year.

(2) That the plaintiff was ready and willing to furnish said partnership of C. E. Sears & Company with its label requirements for 1917, but that said partnership in January, 1917, sold and delivered its factories and business, and its right and its members’ right to do a canning business, and that said defendants had no right to require any delivery of labels for that year.

(3) That while it admits that it furnished no labels for 1917, the plaintiff denies that the defendants purchased labels of the amount and at the price set out in the cross-petition and says that if [65]*65they were so purchased they were purchased for some other use and business than that of C. E. Sears & Company, for whose use and requirements the contract was made.

There is no question that there is due the plaintiff the amount sued for in the petition, the one question in controversy being whether the defendants can recover on their cross-petition for a breach of the contract. The governing provision of the contract reads as follows:

“In consideration of the prices and terms hereinafter named, The United States Printing & Lithographing Company agrees to furnish, and C. E. Sears and Company' agrees to purchase from The United States Printing & Lithographing Company, its entire requirements of labels as herein described for a period of three years from date of this agreement. ’ ’

For the purchaser this agreement is signed in the firm name “C. E. Sears & Co.” The members of the partnership, the signature of which was- thus appended, were the defendants, H. M. Crites and Herman Shade.

The court below, to whom this case was tried without a jury, found for the defendants. That court was of the opinion that inasmuch as- a partnership in this state is not an entity, and has no existence apart from that of the individuals comprising it, the contract in question was in fact made by H. M. Crites and Herman Shade, and for their benefit, and that when the contract was signed it bound them to accept, and the plaintiff to furnish, the “entire requirements of labels” of H. M. Crites and Herman Shade for the time specified. This construction of the contract leads to the view that [66]*66Messrs. Crites and Shade were bound to accept, and the plaintiff to furnish, any number of labels that might be required by the defendants in any canning operations in which they might be engaged, under any name or any where, during the life of the contract. If this be the true construction of the contract, can the contract itself survive? If because partnership entities are not recognized in Ohio we are bound in the construction of this contract to forget that there is such a thing as a partnership and that the contract under question is exclusively the personal requirements of the individuals mentioned, then the contract in question is one under which the plaintiff agrees to sell, and the defendants agree to purchase, the entire requirements of labels of H. M. Crites and Herman Shade, whether much, little or none, whether associated together only, or with others, whether in Ohio or elsewhere. The effect of this construction is illustrated in one of the items for recovery entering into the judgment rendered on the cross-petition. Messrs. Crites and Shade were owners of a two-thirds interest in a partnership that operated a plant at London, Ohio. The other partner, Mr. Fishbaugh, owning the other one-third interest was a stranger to the contract. Because Messrs. Crites and Shade were interested in that plant, and because its operation necessitated the use of labels, it was held that the plaintiff was bound to furnish the labels because of the interest of Mr. Crites and Mr. Shade. Manifestly the needs of the purchasers might thus have been indefinitely extended. If whenever they acquired an interest in a plant their requirements were extended to cover their acquirements, the maximum requirements of the purchasers were incapable of calculation; and, [67]*67conversely, as they parted with their interests, and therefore ceased to require labels, there was no irreducible minimum above zero which they were bound to accept. Such a construction is too indefinite to constitute a binding engagement. (Page on Contracts [2 ed.], Section 97.) It is true that it is not necessary that the contract in unambiguous language set forth the precise quantities contracted for. In modern commercial activities contracts for “requirements” are not unusual, but there must be some fixed conditions or circumstances from which the quantities involved in the contract can at least be approximated.

“The context -of a contract or the surrounding circumstances, or both, may give sufficient certainty to terms which, without such aid, would be indefinite and uncertain.” Page on Contracts (2 ed.), Section 100.

While the courts generally have held enforcible contracts for requirements, as distinguished from contracts for wants or desires, they have found such contracts to possess the necessary mutuality because the requirements had a fixed business basis and were not the fluctuating or sporadic requirements of individual activities.

“It seems that to avoid the want of a mutuality in a contract for the sale of all of a certain commodity which the buyer may need it is necessary that the buyer should have an established business by which the amount which he may need may be estimated with reasonable certainty.” 23 Ruling Case Law, 1267.

As is said by the editor in a monograph on this subject in the newest series of selected cases, 7 American Law Reporter, 498:

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Cite This Page — Counsel Stack

Bluebook (online)
15 Ohio App. 63, 1 Ohio Law. Abs. 395, 1921 Ohio App. LEXIS 209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-printing-lithographing-co-v-crites-ohioctapp-1921.